South Australia to go with own franchising legislation

                                                                                                                                                           02.06.2010

South Australia is planning to go ahead with its own reforms to franchising legislation following negative feedback from Federal initiatives announced this week.

ALP Backbencher and Member for the Light electorate in Gawler, South Australia, Tony Piccolo has been working on a state based model. The South Australian MP believed that the existing methods of dealing with the power imbalance between franchisors and franchisees were inadequate.

Mr Piccolo's legislation was introduced in December 2009 into the South Australian parliament. In his words Mr. Piccolo believes that the proposed changes will "protect Mum and Dad franchisees from predators within the industry."

In a recent media release Mr, Piccolo stated that a 'lack of adequate disclosure and dispute resolution rules' had thwarted competition in the industry. The Member for Light in South Australia, would like greater opportunities for legal resolutions to be available for franchisees.

In response to Mr. Piccolo's initiative the Franchise Council of Australia (FCA) has publicly opposed the move. The FCA does not want state based legislation and instead would prefer to retain the existing Federal model. The Council has however made several submissions to the South Australian MP.

The Franchise Council of Australia has outlined what they see as the fundamental flaws in the Bill which it will be discussing with Mr. Piccolo and other relevant decision makers in the hope that the Bill is withdrawn.

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